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The federal budget’s changes to negative gearing and capital gains tax (CGT) aimed to reduce investor demand for established housing, lowering prices without harming housing supply.
Beginning July 1, 2027, investors can fully negative-gear only newly built homes.
Effective July 1, 2027, the 50% CGT discount will be replaced by cost-based indexation (taxing only real gains) and a 30% minimum tax rate on capital gains.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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